Florida Tax Legal Questions

There are two classes of people who you can declare as a dependent on your Federal Tax Return: Qualifying Children and Qualifying Relatives. Since we are talking about your biological child, he/she would fall under the category of Qualifying Children. In order to claim the minor child, he/she must have resided with you for more than half the year. If the child lived with the other parent for more than half the year, you can still claim the child as a dependant, as long as the other parent waives his/her right to claim that child. The other parent can complete this waiver by executing an IRS Form 8332 waiver. If the child is not a minor, there are some additional criteria: The person must not have provided more than half of his or her own support during the year. The person must be under the age of 19, or under the age of 24 and be a full-time student for at least five months out of the year. In the alternative, the person can be claimed as a dependent at any age if he/she is permanently disabled.... Read More

The short answer is YES! Generally this type of transaction results in what is called "Cancellation of Debt" income, or COD income. This is generally taxed at your regular graduated rates for ordinary income. I highly advise that you consult an attorney or CPA to specifically address the facts in your particular situation, as there may be some things they can do to minimize this liability.... Read More

An occupation tax is generally a state-imposed tax, not a federal tax. I practice in Florida, where there is no such tax, so I recommend you resubmit your question stating specifically what state you are in so someone who practices in your state can assist you. It is never a bad idea to contact a local CPA and pick his or her brain on the matter. You can also try calling the agency that sent you that letter and see if they would waive penalties (which I have had some success in doing).... Read More

While more facts are necessary in order to provide a complete answer to your question, in general gains from the sale of a foreign currency are subject capital gains rate tax, which currently is at a 15% rate. Note that this is applicable to "long-term" capital gains, which are defined as gains derived from qualifying assets which were held for over a year. The above response is a general explanation of the taxation of foreign currency and may not be applicable to your situation depending on the specific facts. I strongly advise that you seek counsel to assure that your gains qualify.... Read More